Tetra Tech EC and Risk Management Case Solution

1. Discuss the evolution of Tt EC's risk management and compliance process.

a. Review case Exhibit 2 and analyze the components of the process as they relate to effective risk management.

b. Why do employees feel that they own the risk management and compliance process at Tt EC?

c. How has this process been inculcated into the firm's culture?

d. Is there evidence of an ethical tone at the management level?

In this fastest-growing world of competition, nearly every organization is subjected to threats related to its capital and growth. To deal with all such related issues risk management process plays a vital role. This risk management process which was evolved in Tetra Tech EC helped the organization resolve issues caused by financial uncertainties, technology issues, and strategic management errors. Compliance management is a process in which the system is observed to ensure that all the standards are in accordance with the model set up by the company. It also keeps records of requirements and policies. The evolution of the compliance process at Tetra Tech EC by bringing about a revision in its policies has played a vital role to deal with the issues faced by the company.

a. The approach of the process of risk management of Tt EC was completely different from other companies and this is all that makes all the difference this is the reason why Tetra Tech EC outstands when compared to other companies. Companies never that a risk that has a possibility of a complete loss or a company never goes for a contract where risk is greater than its appetite. However, the approach of Tetra Tech EC is completely different they although have a very limited risk appetite but they believe that” there is absolutely no risk we can’t deal with”. It is very challenging for any company to formulate such a statement and take a risk with such positivity but without getting exposed to such risks a company would not be able to achieve more. Ups and downs are a part of the business. However, everything lies on the strength of their plans they must have a backup plan for every possibility that might occur otherwise they will have a serious downfall. Tt EC had very strong plans and strategies that help when convert their high-risk activity into low-risk activity by implementing operational controls. For effective risk management, Tetra Tech EC adopted two approaches. The first one says to identify risks and come up with solutions that rule out those risks. Secondly, they believe that before taking any step or approval they never knew if it is going to result positively or not but if it does not pay off the results then they will need to give additional work to compensate for their loss. Hence over the years, Tt EC worked with both internal and external regulations that helped the company to do wonders and also come up with more innovations and better plans. Hence the process of risk management adopted by Tt EC was very effective and inspirational for other companies which helped the company grow more in all forms.